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Microsoft Cancels Xbox Handheld to Partner With Asus on ROG Ally for 2025 Holiday Season

The move reflects Microsoft’s strategy to leverage Windows 11 enhancements on third-party handhelds for a console-like gaming experience launching this holiday season.

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Overview

  • Microsoft has officially ended development of its in-house Xbox handheld prototype in favor of Asus-built devices.
  • The ROG Ally and ROG Ally X will boot directly into a customized Xbox app and integrate Game Pass support.
  • Xbox chief Phil Spencer called the project his closest collaboration between the gaming and Windows teams in his thirty-year tenure.
  • The handhelds will run Windows 11 with support for multiple digital storefronts including Steam and the Epic Games Store.
  • Microsoft remains committed to pursuing next-generation Xbox hardware through partnerships with PC makers after the ROG Ally series launches.